What is the function of accounting?

the accounting function refers to the beneficial effects of the accounting model in the operation process, including various effects on macro-economic development and micro-enterprise management. Accounting is an economic information system, so the main function of accounting model is information processing and transmission. This is the inherent function of accounting itself. Due to the different composition and operation modes of accounting models in different countries, accounting models are endowed with different social functions in addition to their main functions.

1. accounting (reflection) function of accounting

accounting (reflection) function refers to the function of accounting to quantitatively reflect the economic activities that have occurred or completed in enterprises, administrative institutions and other units through confirmation, measurement, recording and reporting, and to provide economic information for business management.

the function of accounting is the most basic function of accounting. Compared with statistical accounting and business accounting, compared with traditional accounting, the features of modern accounting functions are as follows:

① Accounting mainly uses monetary pricing to comprehensively reflect the economic activities of various units (enterprises and administrative institutions) and provide reliable economic information for economic management. Reflecting economic activities in terms of quantity can be measured in three ways: physical quantity, monetary quantity and labor quantity. Under the condition that the commodity economy is developed and the law of value plays a role, in order to effectively manage it, it is necessary to widely use the form of value and comprehensively calculate the occupation of production, the consumption of labor, the income from sales, the formation and distribution of profits, etc.

② Accounting not only records and states the past, truthfully reflects the economic business that has happened, but also predicts the future, providing the basis for the business decision of the enterprise. The accounting function of traditional accounting is mainly to reflect the economic business that has happened afterwards. With the development of social production, the continuous expansion of market scale and the increasing complexity of social and economic activities, enterprises should not only keep abreast of their business conditions, check whether their business activities meet the established goals, but also carefully plan their future actions.

③ Accounting is characterized by continuity, systematicness, comprehensiveness and comprehensiveness. Only continuous, systematic, comprehensive and comprehensive accounting information can effectively and accurately grasp its economic activities and assess its economic benefits.

④ With the introduction of computers into the accounting field, the manual accounting information system has gradually developed into a computerized accounting information system, thus making accounting information more perfect, more timely, flexible and accurate, and more able to meet various and multi-level needs. The most prominent thing is the gradual change from batch processing of manual accounting to real-time processing of computerized accounting.

2. the supervision (control) function of accounting

the supervision (control) function of accounting refers to the function of accounting to control the economic activities of enterprises, administrative institutions and other units according to certain purposes and requirements, so as to achieve the expected goals. Its characteristics are as follows:

① Accounting supervision is mainly monetary supervision by using various value indicators. Accounting is mainly based on value indicators, and supervision is carried out on the basis of accounting, so accounting supervision is mainly based on these value indicators.

② Accounting supervision is carried out at the same time as accounting, including before, during and after post supervision. Prior supervision refers to the examination of the feasibility, rationality and legality of various economic activities by the accounting department in accordance with relevant policies, decrees and systems when participating in the preparation of various plans and expense budgets, and is the guidance for future economic activities. In-process supervision refers to putting forward suggestions on the problems found in daily accounting work, prompting relevant departments to take measures to adjust economic activities so that they can be carried out in accordance with the prescribed objectives and requirements. Post supervision refers to the assessment and evaluation of the rationality, legality and effectiveness of economic activities by analyzing accounting data based on the objectives and requirements formulated in advance. Accounting supervision can be divided into internal supervision and external supervision according to whether its executors belong to their own units.

the nature of accounting function belongs to management, not production. That is, accounting itself does not directly create material wealth, it is separated from production activities and serves to improve the efficiency of production.

the realization of accounting function is carried out through a series of accounting methods. Accounting methods include accounting methods, accounting analysis methods and accounting check's methods.

The accounting and supervision functions of accounting are inseparable and dialectical unity. The relationship between them is: accounting is the foundation, without accounting, accounting supervision will lose its foundation; Accounting supervision is the guarantee of truthful accounting. Without accounting supervision, accounting will lose its significance. Therefore, both accounting and supervision are required.

Accounting functions mainly include

1. Information functions

Information functions are inherent functions of accounting. Since its birth, accounting collects, records and reports information with the help of specific accounting methods. With the development of economy and the progress of science and technology, accounting has developed from an applied technology to a branch of management science, and its inherent information function is recognized by the world. Especially at the turn of the century when information technology is advancing by leaps and bounds, the information function of accounting model will inevitably be brought into full play.

2. Function of code of conduct

When accounting is only used to record the quantity of surplus products, or only used as a tool to accumulate household income and expenditure, it has not yet had the function of code of conduct. With the development of economy and the progress of social system, the number of businesses that need to be accounted and recorded is increasing, and more and more people participate in accounting work, and accounting has gradually become a specialized profession. In this case, there is a need to supervise the loyalty of accountants and assess their work efficiency, and the function of accounting model to standardize accounting behavior arises at the historic moment.

3. Resource allocation function

With the development of economy, the resource allocation function of accounting model is gradually recognized and strengthened by people. Accounting comes from the measurement of surplus products. With the development of productive forces, the separation of the two rights in the form of partnership and principal-agent began to appear in economic life, and it developed into an enterprise form such as a joint stock company. Accounting began to go out of the family and manor, and gradually evolved into a social public product. Therefore, people pay more attention to the resource allocation function of accounting.

4. Benefit protection function

Benefit protection function is an extension of resource allocation function. In the process of exerting the resource allocation function of accounting model, certain economic consequences will inevitably occur. The so-called economic consequences mean that accounting reports will affect the decision-making behavior of enterprises, governments, trade unions, investors and creditors, and the affected decision-making behavior will in turn harm the interests of other related parties. That is to say, whether accounting personnel are restricted by the accounting system or accounting information is standardized according to accounting standards, the protection of some stakeholders is realized by standardizing accounting behavior.

5. Industry management function

An important part of the accounting model in various countries is that the accounting profession and its organizations regulate the accounting industry through laws and regulations. The social system and economic system of different countries are different, and the scope of work and legal responsibility of accounting profession in this country are different, and the institutions that make rules and regulations will also vary from country to country. Therefore, the industry management function of accounting model will also be manifested in different forms.